BUENOS AIRES: Gas stations in Argentina started running low on fuel yesterday as striking truck drivers blocked depots and refineries in one of the biggest trade-union challenges of President Cristina Fernandez's five-year rule.
A three-day strike by fuel truckers is due to end on Friday, but union boss Hugo Moyano, who heads the CGT labor federation, has vowed to announce a nationwide strike by all truckers. He was due to give a news conference later on Thursday to detail the scope of the protest.
Fernandez returned to the country from an overseas trip early due to the protest by the truck drivers' union — feared by governments for its capacity to bring Latin America's third-biggest economy to a standstill.
She has deployed military police to guard fuel depots and oil refineries blockaded by truckers and implemented emergency supply plans in an effort to avert shortages, a situation not seen since a rebellion by farmers in 2008.
"Currently, fuel supplies are down by 70 percent," said Luis Malchiodi, head of the Federation of Fuel Entities of Buenos Aires province (FECOBA). "By midday tomorrow, there practically won't be anything left anywhere."
Rosario Sica, the head of another industry group, said: "If the strike by fuel truckers continues, there will be problems tomorrow."
The government has launched a criminal complaint over the strike and fined the truckers' union four million pesos for defying an order to negotiate, sparking the wrath of Moyano, whose son runs the truckers' union. Both men are at odds with Fernandez.
Moyano used to be a close ally of the president but their strategic alliance has collapsed over the last year, increasing the threat of labor unrest.
Several other unions have pledged support for the truckers.
If the three-day strike ends as planned at midday on Friday, serious disruption to grains transport and oil refineries is unlikely.
Argentina is one of the world's biggest exporters of grains and the vast majority of farm goods are sent to port by truck. Farmers, who are nearing the end of this year's soy and corn harvest, are also major consumers of fuel.
The truck drivers' union launched its protest targeting fuel distribution to back demands for a 30-percent pay rise and income tax reductions.
Annual inflation is estimated at about 25 percent in Argentina, stirring labor unrest as the economy cools down after a long boom.
The strike also reflects jostling for position within the CGT — which holds leadership elections next month - and within Fernandez's ruling and fragmented Peronist party, political analysts say.
Fernandez, who won a landslide re-election last year, is unable to run for re-election in 2015 unless she reforms the constitution.
There are already signs of a nascent succession struggle in her party, which has traditionally had close ties with the unions. That could deepen the conflict.
"When a conflict has a political objective, it's difficult to think that it won't end up escalating," said local pollster and analyst Sergio Berensztein.
